With consumption responsible for over two-thirds of economic growth, the U.S. is a consumer-driven economy. So, everyone is looking to retail numbers for a true sign that the worst is over.
After a brutal winter for retailers, retail sales rebounded 1.2% in May. Further, the previous two months’ retail sales data were revised higher. April sales revised from 0.0% to a 0.2% gain; March sales growth was revised from 1.1% to 1.5%.
Last month, consumers ramped up their motor vehicle purchases, spent more at furniture and home furnishing stores and bought more building materials, garden equipment and other supplies. Health and personal care stores and food and beverage stores also saw notable increases.
So things are looking up for consumer spending for now, and this presents a buying opportunity for stock investors. However, that’s not to say that I recommend just any retail stock.
If you’re looking to profit from rebounding consumer spending, I strongly recommend you limit your new buys to only those stocks that are A- or B-rated in my Portfolio Grader tool. In addition to any stocks that I recommend for my Blue Chip Growth newsletter service—which has a bunch of premium retail stocks—here’s a sample of some of the best opportunities in retail right now:
- Click here to see my top Multiline Retail stocks.
- My top Specialty Retail companies.
- My top Internet and Catalog Retailers.